Report: Leasing of medical kits was of no value

Thursday, September 10th, 2020 23:03 | By
Isiolo Senator Fatuma Dullo
Isiolo Senator Fatuma Dullo. Photo/PD/File

Hillary Mageka @hillarymageka

A senate Adhoc committee established to investigate the facts surrounding the leasing of medical equipment has established that there was no value for money under the Managed Equipment Service (MES) for the contract for the supply of Lot 2 theatre equipment at a cost of Sh8.8 billion.

In its report tabled in the House on Tuesday, the committee chaired by Isiolo Senator Fatuma Dullo revealed that during the tendering stage, despite it being a mandatory requirement, the contractor—Esteem Industries, did not submit the name of a local sub-contractor.

Esteem Industries, an India-based firm was contracted for the supply, delivery, installation, commissioning, maintenance and repair of Lot 2 theatre and CSSD equipment.

Esteem Industries had a local sub-contractor Debra Ltd whose director is Dr Shadrack Mwiti.

The Senate team now wants the Ethics and Anti-Corruption Commission (EACC) to investigate the circumstances under which the cost of the equipment under Lot 2 was inflated and take necessary action on the persons found culpable.

Launch investigations

In particular, the nine member panel wants EACC to investigate the circumstances surrounding the implementation of the contract relating to Lot 2 and in particular, the circumstances that led to a Mwiti, CEO and director Debra Ltd having an irrevocable power of attorney relating to Lot 2 and operating the account into which the payment in relation to Lot 2 is made and the cost of the equipment supplied under Lot 2.

It further wants the Competition Authority to investigate the relationship between Esteem and Debra and in particular, the circumstances under which Mwiti became a co-contractor of Esteem in relation to Lot 2.

“The Committee has established that the irrevocable power of attorney issued to Dr Mwiti by Esteem is an indication of the fact that the contract under Lot 2 was actually novated to Dr Mwiti and by extension Debra Ltd in contravention of the contractual requirement for novation,” the report reads in part.

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